ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to BUD. BUD was compared to 32 industry peers in the Beverages industry. While BUD is still in line with the averages on profitability rating, there are concerns on its financial health. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
BUD had a positive operating cash flow in the past year.
In the past 5 years BUD has always been profitable.
Each year in the past 5 years BUD had a positive operating cash flow.
1.2 Ratios
BUD has a Return On Assets (2.83%) which is in line with its industry peers.
BUD's Return On Equity of 7.48% is in line compared to the rest of the industry. BUD outperforms 43.75% of its industry peers.
BUD has a Return On Invested Capital (6.49%) which is comparable to the rest of the industry.
BUD had an Average Return On Invested Capital over the past 3 years of 6.05%. This is significantly below the industry average of 11.51%.
The last Return On Invested Capital (6.49%) for BUD is above the 3 year average (6.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROIC | 6.49% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
Looking at the Profit Margin, with a value of 9.80%, BUD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BUD has declined.
Looking at the Operating Margin, with a value of 25.87%, BUD belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of BUD has declined.
BUD has a better Gross Margin (55.25%) than 78.13% of its industry peers.
BUD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BUD is creating some value.
BUD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BUD has more shares outstanding
Compared to 1 year ago, BUD has an improved debt to assets ratio.
2.2 Solvency
BUD has an Altman-Z score of 1.77. This is a bad value and indicates that BUD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.77, BUD perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
BUD has a debt to FCF ratio of 6.45. This is a slightly negative value and a sign of low solvency as BUD would need 6.45 years to pay back of all of its debts.
BUD has a Debt to FCF ratio (6.45) which is in line with its industry peers.
BUD has a Debt/Equity ratio of 0.90. This is a neutral value indicating BUD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, BUD perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.05
WACC6.18%
2.3 Liquidity
A Current Ratio of 0.70 indicates that BUD may have some problems paying its short term obligations.
BUD has a Current ratio of 0.70. This is amonst the worse of the industry: BUD underperforms 81.25% of its industry peers.
BUD has a Quick Ratio of 0.70. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BUD (0.54) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.33% over the past year.
The Earnings Per Share has been decreasing by -1.83% on average over the past years.
BUD shows a decrease in Revenue. In the last year, the revenue decreased by -1.45%.
The Revenue has been growing slightly by 2.69% on average over the past years.
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
3.2 Future
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
BUD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.35% yearly.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y11.42%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.13, the valuation of BUD can be described as rather expensive.
BUD's Price/Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.61. BUD is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.67, which indicates a correct valuation of BUD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BUD indicates a somewhat cheap valuation: BUD is cheaper than 71.88% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BUD to the average of the S&P500 Index (37.13), we can say BUD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)4.4
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, BUD has a reasonable but not impressive dividend return.
BUD's Dividend Yield is comparable with the industry average which is at 2.73.
Compared to an average S&P500 Dividend Yield of 2.32, BUD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has paid a dividend for at least 10 years, which is a reliable track record.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
45.64% of the earnings are spent on dividend by BUD. This is a bit on the high side, but may be sustainable.
DP45.64%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
66.54
-0.34 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners19.76%
Inst Owner Change-0.24%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap128.97B
Analysts83.75
Price Target85.71 (28.81%)
Short Float %0.55%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP45.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.01%
Min EPS beat(2)5.76%
Max EPS beat(2)20.27%
EPS beat(4)4
Avg EPS beat(4)10.29%
Min EPS beat(4)4.3%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)10
Avg EPS beat(12)7.21%
EPS beat(16)13
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-4.2%
Max Revenue beat(2)4.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)2.22%
PT rev (3m)5.38%
EPS NQ rev (1m)-6.9%
EPS NQ rev (3m)-7.55%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.67 | ||
| P/S | 2.16 | ||
| P/FCF | 11.52 | ||
| P/OCF | 8.57 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.79 |
EPS(TTM)3.67
EY5.52%
EPS(NY)4.25
Fwd EY6.38%
FCF(TTM)5.77
FCFY8.68%
OCF(TTM)7.77
OCFY11.67%
SpS30.84
BVpS40.37
TBVpS-37.29
PEG (NY)4.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 7.48% | ||
| ROCE | 8.91% | ||
| ROIC | 6.49% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 96.58% | ||
| OM | 25.87% | ||
| PM (TTM) | 9.8% | ||
| GM | 55.25% | ||
| FCFM | 18.73% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score8
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.45 | ||
| Debt/EBITDA | 3.37 | ||
| Cap/Depr | 69.68% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 4.24 | ||
| Cash Conversion | 71.67% | ||
| Profit Quality | 191.15% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.77 |
F-Score8
WACC6.18%
ROIC/WACC1.05
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)13.33%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y11.42%
Revenue 1Y (TTM)-1.45%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-6.32%
Revenue Next Year1.78%
Revenue Next 2Y3.14%
Revenue Next 3Y3.48%
Revenue Next 5Y4.35%
EBIT growth 1Y5.98%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.75%
EBIT Next 3Y16.41%
EBIT Next 5Y12.43%
FCF growth 1Y29.73%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y13.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%